It’s as much of a family tradition as pumpkin pie, mistletoe and New Year’s countdowns. For many friends of Life Network, generosity is the heart and soul of their final months of the year.
Are you considering a year-end gift to help us share the gospel, provide life-affirming alternatives to abortion and empower parents to be healthy and hopeful?
3 Tax-wise Strategies for the Season of Generosity
There are a number of tax-wise strategies to multiply the impact of your generosity, while minimizing your costs and stress. For a downloadable printout, click here.
Still Have Questions?
Here are some frequently-asked questions, and our friends at the Barnabas Foundation have provided some helpful answers:
Q: What are the benefits of donating stock?
A: If you have appreciated stock or other securities you’ve owned for at least a year, you can receive a double tax benefit by donating it to Life Network. Not only will you receive a tax deduction for the fair market value of the stock, you’ll also avoid paying capital gains tax. This makes giving appreciated stock a much more cost-effective option than giving cash.
Q: Should I consider giving my real estate to Life Network?
A: Yes! Many people give more to Life Network at a lower cost than they ever thought possible through a gift of real estate! Whether you’re wanting to sell a vacation home, farm or rental property, giving real estate holds significant benefits for you AND God’s Kingdom. Not only will you receive an income tax deduction for the fair market value of the property, you’ll also eliminate capital gains tax. All while supporting the important mission of Life Network.
Q: I’ve heard I can give directly from my crops. What are the benefits?
A: Give directly from your harvest to stretch the value of your donation! By giving commodities — such as grains, soybeans, livestock and more — you can achieve greater Kingdom impact and experience personal tax savings. Giving from your harvest reduces your taxable income and provides the ability to deduct your production costs.
Q: I want to give a year-end gift to Life Network, but I’m concerned about cash flow. What are my options?
A: Here are three tax-wise solutions that allow you to give without affecting cash flow!
- Gifts of Stock. If you have appreciated stock or other securities you’ve owned for at least a year, you can receive a double benefit by donating it to ministry. Not only will you receive a charitable tax deduction for the fair market value, but you’ll also avoid paying capital gains tax.
- Gifts of Real Estate. Many people are able to give more than they ever thought possible by giving a vacation home, rental property, farmland or other real estate to Life Network. It’s a smart way to redirect property you no longer need or care to manage for the benefit of God’s Kingdom.
- Gifts from Your IRA. If you are 70 ½ or older, you can make a substantial gift to [Ministry Name] directly from your IRA. Not only will this gift meet your required minimum distributions, but it also reduces your taxable income.
Q: How can I give to ministry through my Individual Retirement Account (IRA)?
A: If you are at least 70 ½ years old, you can give up to $100,000 from your IRA (or $200,000 for couples) to Life Network and receive significant tax benefits in return.
Any gifts from your IRA…
- reduce your taxable income (whether or not you itemize!),
- can be used to fulfill any charitable pledges you’ve made, AND
- will fulfill all or part of your required minimum distributions.
Q: Isn’t cash the best way to give to ministry?
A: While most charitable gifts are in the form of cash because this is so familiar, this is not always the most cost-effective way for you to give. You may be able to increase your potential impact— and experience significant tax benefits — by giving non-cash assets such as…
- Stock or marketable securities
- Real estate
- Business interests
- Farm commodities
- Life insurance
- Retirement benefits
- Tangible personal property
Q: How can I buy more time to make a year-end gift to Life Network?
A: Through a donor-advised fund (DAF), you can give stock or other non-cash assets into a single online giving account. So long as you deposit your gift into the DAF by December 31, you can claim a deduction on this year’s taxes. You can decide later how best to distribute the funds. Because of our partnership with Barnabas Foundation, you have complimentary access to the Stewards Fund, a DAF that reflects your Christian values. The Stewards Fund offers you more flexibility in recommending grants to Life Network during the year-end rush.
Learn more by calling Mike today at 719.355.1190 or by visiting eLifeNetwork.com/LegacyGiving.